Regulatory Alerts2018-03-31
Information Circular 6 of 2010: Regulation 28 Foreign Investment Exemption for Pension Funds
The Registrar of Pension Funds issued this circular to implement the South African Reserve Bank's increase of the foreign investment allowance for retirement funds from 20 percent to 25 percent. Pending formal amendments to Regulation 28 of the Pension Funds Act, pension funds must apply for regulatory exemptions to legally utilize the expanded overseas investment limit. Funds previously granted exemptions for the 20 percent threshold will automatically receive approval for the new 25 percent limit via a forthcoming letter, eliminating the need for duplicate applications.
Board Members: AM Sithole (Chairperson) H Wilton (Deputy Chairperson) Z Bassa JV Mogadime J Cross Prof PJ Sutherland D Turpin H M H Ratshefola DMsomi Executive Officer: DP Tshidi Riverwalk Office Park Block B 41 Matroosberg Road Ashlea Gardens Extension 6
Pretoria South Africa 0081 PO Box 35655 Menlo Park Pretoria South Africa 0102 Tel +27 12 428 8000 Fax +27 12 347 0221 E-mail info@fsb.co.za Toll free 0800 110443/0800 202087 website:www.fsb.co.za ENQUIRIES: Alta Marais D. DIALLING NO.: 012 428 8065 OUR REF: 12/12/1 FAX: 012 346 6510 DATE: 17 December 2010 E-MAIL: altam@fsb.co.za INFORMATION CIRCULAR 6 OF 2010 PENSION FUNDS ACT, 1956 REGULATION 28 – EXEMPTION IN RESPECT OF INVESTMENTS HELD OUTSIDE THE REPUBLIC The South African Reserve Bank has issued Exchange Control Circular No. 44/2010 on the increased prudential limits for foreign investment allowance. The relative limit in respect of retirement funds have increased from 20% to 25%. Until the amendments to regulation 28 have been effected, to give effect to the increased exposure limit, funds would be required to apply for exemption to be able to utilise such increased limit. However, those funds that were previously exempted by the Registrar for purposes of the increased 20% limit need not apply, as they will be granted the exemption to the increased limit of 25%, by way of a letter shortly. Yours faithfully JA BOYD For: Registrar of Pension Funds